We are still seeing a lot of clients who think that talk in the media of falling property prices will translate into vendors accepting any old offer on their property.  Unfortunately the reality is different. A general dramatic fall in prices is not imminent, despite our best efforts to persuade sellers to recognise current market conditions. Why? Because what actually happens when property prices drop is that market volume falls. People simply put of trying to sell their homes until the market improves. The only people left in are those who must sell, typically because of mortgage, family or health problems. The rest stay put and sit it out.

We are currently working hard to ensure that sellers understand the new market conditions and offer their properties at realistic prices. As a result we have seen quite a few price cuts in recent weeks and we will try for more. Whenever a price is reduced the property will be included in our weekly property update. If you have an interest in any property we are offering you can always try an offer. Nothing ventured, nothing gained! But keep it serious and include your time table for buying. That will get any offer treated more seriously.

The other issue at the moment is the near impossibility of getting a mortgage. Lenders are tightening up across the board and even if they are prepared to lend to you and against the property you want to buy, they are offering much lower percentage loans than hitherto. The reality is that very, very, few mortgage applications are being approved. I believe however this situation offers major opportunities to both buyers and sellers to make their own arrangements direct through owner financing. The concept is not new, being well established in the USA.

OK, what do we mean by owner financing? Well there are plenty of options.  It could be a straight mortgage arranged directly between the buyer and seller on terms they agree (period, interest rate, deposit etc) or it could be staged payments or a final or long term payment plan. For sellers this approach is a great way to make their house stand out from the crowd whilst for buyers it makes buying a home affordable. Again we will happily put any payment proposals to sellers.

Finally we do know some owners would look at a property part exchange!

The bottom line is that hard times require original thinking and I hope we have given you a few ideas today!